SCHEDULE 13G/A: Apollo Affiliates Maintain Significant Stake in CION Ares Diversified Credit Fund's Preferred Shares

A group of Apollo-affiliated entities, including Athene Annuity and Life Company, have filed an amended Schedule 13G, reaffirming their collective beneficial ownership of 14.8% of CION Ares Diversified Credit Fund's Mandatory Redeemable Preferred Shares.

Summary

• This is an Amendment No. 7 to a Schedule 13G filing by a group of nine entities affiliated with Apollo, including Athene Annuity and Life Company (AAIA).
• The filing reports beneficial ownership of Mandatory Redeemable Preferred Shares (MRPS) of CION Ares Diversified Credit Fund.
• The reporting persons collectively hold 4,560,000 shares, representing 14.8% of the outstanding MRPS.
• This percentage is based on 30,800,000 shares of MRPS outstanding as of December 31, 2024, as reported in the Issuer's Certified Shareholder Report filed on March 6, 2025.
• The shares are held with shared voting and shared dispositive power among the reporting persons.
• The acquisition and holding of these securities are stated to be in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 6

Explanation: The document is a neutral, factual regulatory filing. The continued significant ownership by a major financial group like Apollo could be seen as a positive signal of confidence in the issuer's preferred shares, hence a slightly positive score, but it contains no new operational or financial news about the issuer itself.

Positives

• The continued significant stake (14.8%) by Apollo-affiliated entities suggests a long-term investment perspective and confidence in CION Ares Diversified Credit Fund's Mandatory Redeemable Preferred Shares.
• The filing explicitly states that the securities were acquired and are held in the ordinary course of business, not for control purposes, which indicates a stable, passive investment.

Risks

• The document itself does not detail specific risks related to the issuer's operations or financial health; it is a beneficial ownership report.
• However, the nature of preferred shares means they are subject to the credit risk of the issuer, CION Ares Diversified Credit Fund.

Future Outlook

This Schedule 13G filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding the future performance or strategy of CION Ares Diversified Credit Fund or the reporting entities.

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."

Industry Context

This filing reflects a routine disclosure of significant passive ownership by institutional investors in a credit fund. Large asset managers and insurance companies, like Apollo and Athene, frequently hold substantial positions in various investment vehicles as part of their diversified portfolios, particularly in fixed-income or preferred equity instruments for yield and stability.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder of the company's preferred shares, potentially signaling stability or confidence.
• Management: Awareness of a large, passive institutional investor in their preferred equity.

Next Steps

• The reporting persons will continue to monitor their investment in CION Ares Diversified Credit Fund.
• Further amendments to this Schedule 13G would be filed if there are material changes in beneficial ownership (e.g., exceeding 1% change) or the purpose of the investment.

Key Dates

Keywords

Schedule 13G, Beneficial Ownership, CION Ares Diversified Credit Fund, Apollo Management Holdings, Athene Annuity and Life Company, Mandatory Redeemable Preferred Shares, SEC Filing, Institutional Ownership, Investment Fund, Credit Fund